New Delhi, June 14: In a major step, Market regulator Securities and Exchange Board of India (Sebi) today has restrained promoters of New Delhi Television, popularly known as NDTV Prannoy Roy and Radhika Roy, from accessing securities market for two years.
"During the period of prohibition the existing holding of the noticees including mutual funds shall remain frozen," Sebi said.
The channel's promoters Prannoy Roy, Radhika Roy have been restrained by Sebi from holding a position as a director or any key managerial personnel in NDTV for two years.
They have also been restrained from holding a position as director in any other listed company for a period of one year.
The order came in a 2017 case, where an NDTV shareholder alleged that RRPR Holdings (promoter of NDTV), Prannoy Roy and Radhika Roy didn’t disclose information about loan agreements entered into by them with Vishvapradhan Commercial.
As per the last shareholding pattern available, Prannoy Roy held 15.94 per cent in NDTV while Radhika Roy held 16.33 per cent. The aggregate promoters’ shareholding in NDTV was 63.17 per cent at the end of the quarter ending on June 2009 which has since remained unchanged.
In response, NDTV has said, “Radhika and Prannoy Roy, the promoters of NDTV, believe the SEBI order asking them to step down as directors and to not hold any management positions in NDTV, is based on an incorrect assessment and highly unusual directive. They will take urgent legal action as advised within the next few days.”